Sunday, April 21, 2013

How To Avoid Common Tax Mistakes

When you file your taxes then you need to do it with full carefulness. This is necessary to avoid unnecessary mistakes you may make. To get together your tax return you need to organize all the information. After this double check the returns to ensure that these are accurate and complete. 

When you file the tax return for the first time then you need to be more careful. The common tax mistakes you need to stay away from are: 

1. Missing Social Security Number

This is a very common error made by people while filling the tax form. Do not forget to fill your Social Security Number. IRS gets numerous tax returns every year without or with wrong attached Social Security Numbers. If you make this mistake then it would hinder to process your tax return. Entering the wrong one would lead to rejection of all the exemptions and deductions claimed by you. Moreover, any of your refunds would be put to hold and late fees can be asked for the money you owe to IRS. Double check Social Security Number of yours and your claimed dependents. Look at the Social Security cards to verify it exactly. 

2. Failing to add all the income sources

Add the documentation of your income to tax return. Add the copies of all the W-2 forms received by you in the year. Also add 1099 income as well as any miscellaneous income earned by you. If you fail to add some income received by you then it would give a negative impression about hiding something. This may make IRS have a closer look to your return. It may lead to asking for audit and additional documentation. If you do not have forms to show income from any company then contact that company immediately. Request for 1099 and W-2 from all your employers. 

3. Math errors

Lots of people file the returns manually. This increases the chances to make mathematical errors. Even a small error can make you owe a huge amount of money. If you claim too much income and too less deductions due to math errors then you can find yourself paying more taxes than otherwise. So always double check using a calculator or tax preparation software.

4. Forgetting to add payment

Always check your envelope to ensure you have put your money order or check with tax return. You can e-file as well to make payment electronically. In case you cannot pay the entire amount then you can contact IRS for making payment arrangements.

Author Bio: Leona is a content writer and writes on all the niches of this field. She elaborately covered this topic on how to avoid common tax mistakes. You can place orders of discount checks online unlimited to take care of your financial worries.

No comments:

Post a Comment

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics